Malaysia: 24% Rate on High-Value Electronics and Industrial Goods
Malaysia was assigned a 24% IEEPA reciprocal tariff rate effective April 5, 2025. Malaysia holds an outsized position in global semiconductor and electronics supply chains — making the 24% rate particularly consequential for technology companies and industrial importers.
For U.S. importers, every dollar of Malaysian goods assessed IEEPA duties generated $0.24 in refundable duties under the CAPE portal following the Supreme Court’s February 2026 ruling.
Malaysia in the Global Supply Chain
Malaysia is one of the world’s most important electronics manufacturing hubs:
- Semiconductors: Malaysia is a major center for semiconductor packaging, testing, and assembly. Companies including Intel, Infineon, NXP Semiconductors, and others operate large Malaysian facilities.
- Electronics: Consumer and industrial electronics, PCBs, and components
- Rubber gloves and medical devices: Malaysia produces a large portion of the world’s medical gloves and related products
- Palm oil: Refined palm oil and derivatives for food and industrial applications
- LNG: Liquefied natural gas (though energy products typically do not carry IEEPA reciprocal codes)
Key Product Categories
Semiconductors and Electronic Components (Chapters 84–85): Packaged integrated circuits, memory modules, and assembled electronic components manufactured in Malaysia and imported by U.S. technology companies. At 24%, the IEEPA rate on high-value electronics represented significant duty exposure.
Electrical Machinery (Chapter 85): Transformers, switchgear, and other electrical equipment manufactured in Malaysia for industrial use in the U.S.
Rubber and Latex Products (Chapter 40): Medical gloves, industrial rubber goods, and latex products manufactured in Malaysia. The U.S. healthcare system relies heavily on Malaysian glove production.
Processed Food (Chapters 15, 20): Refined palm oil, margarine, and palm oil–based food ingredients imported for U.S. food manufacturing.
No FTA Complications
The United States does not have a free trade agreement with Malaysia. Malaysian-origin goods that entered the U.S. between April 5, 2025 and February 20, 2026 with IEEPA duties assessed are cleanly eligible for CAPE refund consideration — no FTA exemption categories to navigate.
Estimating Your Malaysia Refund
For a business that imported $2,000,000 in Malaysian goods during the IEEPA period:
- Estimated duty refund: $480,000 (24% × $2,000,000)
- Estimated interest (~5%): $24,000
- Estimated total: $504,000
Use the calculator above to estimate your specific situation.